Hyundai Merchant Marine. December 2013

Transcription

1 Hyundai Merchant Marine December 2013

2 Table of Contents 1. Company Overview 1.1 Business Portfolio 1.2 Fleet Portfolio 1.3 Fleet Expansion Plan 2. Performance Review 3. Divisional Data 4. Financial Data 5. Appendix

3 1. Company Overview Business Portfolio HMM has three main business operations: container, wet bulk, and dry bulk shipping service. Diversified business portfolio supports sustainable growth withstanding market volatility. Historical Revenue Historical Operating Income Container Wet Bulk Dry Bulk (Unit : KRW billion, %) Container Wet Bulk Dry Bulk Total (Unit : KRW billion) 5,119 4,846 4,734 5,092 8,003 15% 19% 6,115 13% 8,087 15% 14% 7,714 7,188 15% 16% 15% 12% 12% 6,908 15% 12% ,945 12% 16% 18% 18% 16% 20% 14% 23% 16% 18% 19% 72% 64% 64% 63% 66% 66% 68% 71% 73% 72% 73% (Source : Non consolidated financial statements) 3

4 1. Company Overview Fleet Portfolio (As of December 31, 2013) Owned Chartered Total No. Capacity No. Capacity No. Capacity Container > 10,000TEU ,000-10,000TEU ,000-8,000TEU < 4,000TEU Container total Wet Bulk Gas carrier Crude tanker 7 1, , ,346 Other tanker Wet bulk total 15 2, , ,408 Dry Bulk Capesize 11 1, , ,709 Panamax Supramax , ,279 Handysize Heavy Lift Dry bulk total 14 2, , ,105 Total Capacity Unit : Container 1,000 TEU / Wet Bulk 1,000 DWT / Dry Bulk 1,000 DWT (Chartered over one year) 4

5 1. Company Overview Fleet Expansion Plan Container 13,100 TEU 5 (As of December 31, 2013) Owned Chartered Owned Chartered Owned Chartered Owned Chartered 10,000 TEU 6 Wet Bulk VLCC Dry Bulk Capesize Panamax 3 Supramax Handysize Heavy Lift Total No. of New vessel (Number of delivered vessel)* (Chartered over one year) 5

6 Table of Contents 1. Company Overview 2. Performance Review 2.1 FY2013 Annual Results 2.2 Quarterly Results 2.3 Divisional Results 2.4 Cost Structure 3. Divisional Data 4. Financial Data 5. Appendix

7 2. Performance Review FY2013 Results (Unit : KRW billion, USD million) FY2013 FY2012 YoY Revenue 6,908 7, % (USD million) 6,294 6, % COGS 7,096 8, % SG&A % 1. Revenue : KRW 6,908 Bn YoY % Container Freight Rate YoY -7.6% 2. COGS : KRW 7,096 Bn YoY -12.0% Fuel Cost YoY -29.9% Charterage YoY -11.2% Operating Income Operating Income : KRW -351 Bn Operating Margin -5.1% -6.7% 7

8 2. Performance Review Quarterly Results (Unit : KRW billion, USD million) 4Q Q 2013 QoQ 4Q 2012 YoY Revenue 1,650 1, % 1, % (USD million) 1,557 1, % 1, % COGS 1,717 1, % 1, % SG&A Operating Income Operating Margin -6.5% -2.6% -9.1% (Source : Non consolidated financial statements) 8

9 2. Performance Review Divisional Results (Unit : KRW billion) Q Q QoQ Q YoY Container Revenue 1,221 1, % 1, % Operating Income Operating Margin -4.2% 0.3% -4.4% Wet Bulk Revenue % % Operating Income Operating Margin -4.9% -13.0% -4.3% Dry Bulk Revenue % % Operating Income Operating Margin -19.0% -10.0% -32.5% Total Revenue 1,650 1, % 1, % Operating Income Operating Margin -6.5% -2.7% -9.1% (Source : HMM inside data) 9

10 2. Performance Review Cost Structure COGS decreased by 1.5% QoQ. Cargo Handling fee decreased by 5.1% QoQ as container volume diminished. Fuel cost fell by 10.8% QoQ due to fuel saving plans as well as lowering of bunker price. COGS Structure Cargo Handling Fuel Charterage Depreciations Others (Unit : KRW billion) 4Q Q 2013 QoQ 4Q 2012 YoY 2% 2% COGS 1,717 1, % 1, % Cargo Handling % % 34% KRW 1,717 Bn 44% Fuel % % Charterage % % Depreciations % % 17% Others % % (Source : HMM inside data) 10

11 Table of Contents 1. Company Overview 2. Performance Review 3. Divisional Data 3.1 Container Division 3.2 Wet Bulk Division 3.3 Dry Bulk Division 4. Financial Data 5. Appendix

12 3. Divisional Data Container Division HMM implemented GRI(General Rate Increase) for all U.S destinations as of November 15, $950/TEU GRI in Asia-North Europe & Med trades(w/b) in November is followed by another $800/TEU GRI as of December 16. Freight Rate Trend HMM GRI Record Service Guideline Effective Transpacific Asia-Europe Intra Asia (Unit : percentage) Transpacific (E/B) $400/FEU November 15 $200/FEU December 20 PSS $50/FEU January 6, 2014 $300/FEU January 15, $300/FEU March 15, 2014 $515/TEU September * Asia Europe (W/B) $950/TEU November 1 $800/TEU December 16 $800/TEU January 13, 2014 $500/TEU March 15, 2014 (Source: HMM inside data) 12

13 3. Divisional Data Container Division Trade volume remains strong despite 4Q slack season. Carriers seek to improve supply-demand imbalance by way of reorganizing their service products as well as of expanding blank sailings. Utilization Ratio Weekly Trade Volume Transpacific Asia-Europe Intra Asia (Unit : percentage) 80,000 Transpacific Asia-Europe Intra Asia (Unit : 1,000 TEU/WK) , , , * * (Source: HMM inside data) 13

14 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec Divisional Data Wet Bulk Division World Scale(WS) has rallied sharply by strong seasonal demand. World Scale(WS) Supply & Demand Growth 120 Supply Demand % 5.2% 4.7% 3.5% 4.5% % (Source: Clarksons BDTI TD3 : 260,000mt, Middle East Gulf to Japan) (Source : Drewry) 14

15 3. Divisional Data Wet Bulk Division HMM has secured long term contract for stable earnings as bearish market continues with oversupply of vessels. HMM is finding opportunities to increase crude oil tankers to take best advantage of the trough of industrial cycle. Wet Bulk Revenue Mix Spot Exposure Crude Tanker Product Tanker LNG LPG 4% 4% 2% 37% 37% 38% 12% 12% 13% 48% 48% 47% FY2011 FY2012 FY % SPOT 35.6% Charter-out 4.6% KRW 183 Bn COA 59.8% (Source: HMM inside data) (Based on 4Q 2013 Wet Bulk Revenue) 15

16 3. Divisional Data Wet Bulk Division HMM s VLCCs are cost competitive as they were set to be delivered ahead of the hike of new building price. Based on accurate and extensive market forecasts, HMM has well balanced the ratio of spot and fixed revenues in crude oil tanker service. VLCC Delivery vs. New Building Price Historical Fixed Revenue vs. World Scale ($ million) Vessel Delivery(R) VLCC New Building Price(L) (Percentage) Fixed Revenue Exposure(L) WS(R) (Source: HMM inside data, Clarksons) * Delivery includes Owned and Chartered Vessels 16

17 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec Divisional Data Dry Bulk Division Bearish market continued during the year, but the market seems to be gradually improving next year. After sharp rally in capesize market due to increasing Brazil iron ore export in the 3Q, the market shows upward trend while in volatile condition. BDI Supply & Demand Growth 5,000 Supply Demand 4,000 3,000 2,000 2, % 6.5% 7.8% 9.3% 6.6% 8.5% 1,000 1,752 0 (Source: Baltic Exchange) (Source : MSI) 17

18 3. Divisional Data Dry Bulk Division HMM will continue to try long-term freight contracts for stable income flow. HMM has been focusing on reforming cost structure for the longer-term perspective. Dry Bulk Revenue mix Spot Exposure Dedicated Service Tramper Bulk Liner Heavy Lift 11% 12% 12% 17% 17% 18% 50% 50% 46% SPOT 45.4% KRW 246 Bn COA/CVC 31.5% 23% 22% 24% FY2011 FY2012 FY2013 Charter-out 23.1% (Source: HMM inside Data) (Based on 4Q 2013 Dry Bulk Revenue) 18

19 Table of Contents 1. Company Overview 2. Performance Review 3. Divisional Data 4. Financial Data 4.1 Non Consolidated 4.2 Consolidated 5. Appendix

20 4. Financial Data Summary Financial Statements - Non consolidated Statement of Financial Position Statement of Comprehensive Income (Unit: KRW million) (Unit: KRW million) Category FY2012 FY2013 Category FY2012 FY2013 Total assets 7,908,884 6,854,879 Sales Revenue 7,713,825 6,908,325 Current assets 2,136,915 1,765,697 Cost of sales 8,064,005 7,096,331 (Cash and cash equivalents) 624, ,139 Gross profit -350, ,006 Non-current assets 5,771,969 5,089,182 Operating Income -519, ,392 Total liabilities 7,029,206 6,396,954 Profit before tax -987, ,813 Current liabilities 1,854,801 3,773,266 Profit (Loss) -998, ,881 Non-current liabilities 5,174,405 2,623,688 Total equity 879, ,925 Total equity and liabilities 7,908,884 6,854,879 Category FY2012 FY2013 Debt to Equity Ratio 799.1% % Dividends FY2012 FY2013 Common Stock N/A N/A Net Debt to Equity Ratio 633.0% % 20

21 4. Financial Data Summary Financial Statements - Consolidated Statement of Financial Position Statement of Comprehensive Income (Unit: KRW million) (Unit: KRW million) Category FY2012 FY2013 Category FY2012 FY2013 Total assets 8,982,427 8,842,585 Sales Revenue 8,046,896 8,149,334 Current assets 2,413,718 2,367,774 Cost of sales 8,159,769 8,036,998 (Cash and cash equivalents) 778, ,455 Gross profit -112, ,336 Non-current assets 6,568,709 6,474,811 Operating Income -509, ,872 Total liabilities 7,887,137 8,154,885 Profit before tax -969, ,547 Current liabilities 2,069,425 4,369,680 Profit (Loss) -988, ,020 Non-current liabilities 5,817,712 3,785,205 Total equity 1,095, ,700 Total equity and liabilities 8,982,427 8,842,585 Category FY2012 FY2013 Debt to Equity Ratio 720.1% % Net Debt to Equity Ratio 521.7% 830.2% < Subsidiaries > 63 companies including Hyundai Asan, Hyundai Research Institute, etc. 21

22 Table of Contents 1. Company Overview 2. Performance Review 3. Divisional Data 4. Financial Data 5. Appendix 5.1 Shareholder Structure 5.2 Global Networks

23 5. Appendix Shareholder Structure Hyundai Elevator 24% (As of December 31, 2013) Share holders No. of shares % HHI 14% Hyundai Elevator 40,163,918 24% Hyundai Heavy Industries (HHI) 23,424,037 14% H E&C 7% Hyundai Engineering & Construction (HE&C) 11,048,227 7% HSHI 6% Hyundai Samho Heavy Industries (HSHI) 10,479,174 6% Others 84,157,873 49% Total 169,273, % 23

24 5. Appendix Global Networks 4 Regional HQ, 26 Subsidiaries, 74 Branches, 3 Liaison Offices, 5 Operating Terminals HMM Europe London Le Harve St. Petersburg Gothenburg Rotterdam Hamburg Antwerp Vienna Genoa HMM CHINA Shanghai HMM HQ Seoul Dubai Hong Kong Taipei Mumbai Kaohsiung Bangkok Ho Chi Minh Klang Singapore Tokyo HMM America Tacoma Irving Long Beach HMM HQ HMM South East/West Asia Sydney Regional HQ Operating Terminals (Others are subsidiaries) Sau Paulo Operating Terminals Location Capacity /year Owned Share Remark CUT California 1,200,000 TEU 100% WUT Washington 1,100,000 TEU 100% KHT Kaohsiung 800,000 TEU 100% HPNT Busan 2,000,000 TEU 50% RWG Rotterdam 4,000,000 TEU 20% to be opened in

25 End of Documents HMM IR Contacts Y. K. Jung H. J. Kim Jimena Ahn HMM IR Website : IR Meeting Request IR Archive : IR presentations/ Earnings Release / HMM Inside